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Market Maker Definition

Market maker – n : financial/Wall Street term; a brokerage house or investment bank that specializes in buying or selling a specific security of a specific issuer for the purpose of creating a liquid market for buyers and sellers of that security, and to make money in the process by charging a spread (margin) between the purchase price and the sales price of that security. Investment banks and brokerage firms typically make a market in many securities issued by multiple different companies.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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